Preqin ESG Solutions 47 ii. The median water withdrawal per employee per industry as computed in 3c .based on the industry the company operates in. What do our water withdrawal estimates mean? 100 Ml water withdrawn means Preqin estimates the asset withdrew last year 100 megaliters of water last year. This proxy is based on the number of employees a company has, its industry, and the country in which its headquarters are located, drawing on public market data and country-level water e昀케ciency estimates. Employee A creative, motivated, and highly trained workforce is often its most important resource. Companies compete for the most metrics capable candidates, to secure the highest competency levels in technology, leadership, or interpersonal communication. The risk of losing top talent materializes in several ways. A company might lose its competitive edge, fail to achieve its targets, or no longer be able to conduct its core operations. It will also face a substantial cost (both in terms of time and money) of hiring a replacement – and any company unable to secure a dedicated workforce will struggle to expand and grow. Preqin ESG employee metrics captures information about whether a potential portfolio company is growing, gaining or losing talent, o昀昀shoring, outsourcing, or expanding into new markets. It will indicate looming problems with skills or cultural mismatches before your decision about an acquisition or buyout becomes 昀椀nal. It may also deliver an early warning signal, allowing you to adjust and implement your strategy before the performance of your investments is adversely a昀昀ected. We currently provide two employee metrics: • Employee net growth approximates the net change in the number of employees within a given year • Employee volatility estimates the gross change in the number of employees within a given year. It approximates employee turnover rates. Both metrics are relative to the size of a company, so values are comparable across an entire portfolio. ↗ Back to Contents
Preqin ESG Solutions Methodology Page 46 Page 48